Shares of GameStop (NYSE: GME) have nearly doubled in 2013, and are up more than 170% since last August. The company has shaken off threats to its business model, and bulls are looking forward to the upcoming console refresh.
Still, while there are reasons to like GameStop right now, longer-term the company remains immensely challenged.
GameStop has bounced back from a rumor-fueled selloff
Before they were unveiled, there was widespread more »
In July 2013, leading video game publisher Activision Blizzard (NASDAQ: ATVI) decided to get out from under majority owner Vivendi’s yoke, agreeing to pay $8.2 billion for most of the France-based conglomerate’s position. According to the announcement, $5.8 billion will be purchased by the company and $2.4 billion of the shares will be purchased by investors led by the company’s CEO and Chairman. The more »
Consumer electronic stores were severely hit in the economic downturn of 2008. Consumer confidence fell and the customer traffic at the stores dwindled. With disposable incomes reviving and business sentiment in the economy picking up, I expect electronic stores to start reporting robust performance in the years to come.
The electronic stores industry has only five players that are publicly listed. Let’s focus on the three largest companies by more »
When the two technology giants made an announcement about their gaming consoles (PS4 for Sony and Xbox one for Microsoft), it became clear that Microsoft was losing touch with gamers. Microsoft (MSFT) seemed to be paying less and less attention to its customers because of its expensive overly luxurious gaming console. After making the announcement on Xbox one the internet went abuzz with gamers complaining over the two new requirements more »
Goodbye, Coinstar. Hello...Outerwall (NASDAQ: OUTR)?
This week Coinstar went through a name change, reflecting its diversified set of businesses. The company operates several vending businesses from Coinstar to the beloved Redbox, with its hands in a few new upstart projects.
Does this new name change reflect a new era?
Outerwall's current product mix is showing some age. A potential end to the U.S. penny threatens more »
Online retail giants like Amazon and eBay have encroached on the retail stores market. According to Forrester Research, U.S. online sales are expected to reach $248.7 billion in 2014 and grow at a compound annual growth rate of 10% over the next few years. In such a scenario, retail stores are attempting to adjust their strategies by developing their major segments and expanding their existing business online as more »
When Microsoft (NASDAQ: MSFT) introduced the Xbox One, the features it touted seemed completely misaligned with its core gamer customers. Sony (NYSE: SNE), however, struck hard and aimed its new PlayStation 4 squarely at hard-core gamers. Microsoft is already in catch-up mode.
Microsoft launched its marketing efforts for its new Xbox game system by stressing it as a living room media hub. For example, customers can use it to more »
Back in 2012, Best Buy (NYSE: BBY) saw its stock trade below $12 for the first time since the dot-com bubble burst; now the big-box retailer is back in favor, flirting with nearly $30.
This miraculous turnaround has made Best Buy one of the best-performing stocks in the S&P 500 year-to-date, up nearly 150%.
Question is; why was its stock down so much in the first place. Best Buy more »
GameStop (NYSE: GME) boasts the title of being the largest video game retailer and claims an impressive foothold with over 6,500 stores spread across North America, Australia, and Europe. The retail giant rode a wave of success during the seventh generation of console gaming (i.e. Xbox 360, PlayStation 3, Wii) and, even after the recession, GameStop still returned 120%.
Image from Xbox.com
The way consumers purchase and more »
GameStop (NYSE: GME) has enjoyed an extraordinary run over the past year, which is interesting considering revenue declined and earnings fell into the red in 2012. With failure of many of its physical video-game store rivals, GameStop now owns nearly 50% market share for popular gaming hardware and software. GameStop is also the top destination for the buying, selling, and trading of video games. The company has made several strategic more »
When I wrote about Gamestop (NYSE: GME) last October, the stock was trading at $20 per share and I said it was worth $55 in a best-case scenario. The stock has since risen to above $40 per share -- a sweet 100% return for owners of the stock over this period.
My optimism about Gamestop's future has increased since then, but not because of the large rise in share price more »
The most popular small cap stocks among hedge funds, as determined from quarterly 13F filings, tend to outperform the S&P 500 by an average of 18 percentage points per year (learn more about our small cap strategy). We think that this is because small cap stocks receive less attention from large institutional investors such as mutual funds as well as the financial media, and so, are more likely to more »
Joel Greenblatt, the former manager of Gotham Capital, has achieved a widespread following among investors through his books (including You Can Be A Stock Market Genius) and his “Magic Formula” among other activities (normally this degree of self-promotion worries us, but Greenblatt does actually offer useful lessons).
We track Greenblatt’s 13F filings alongside those of hundreds of hedge funds and other notable investors as part of our work developing more »
Google (NASDAQ: GOOG) is working on an Android video game console, according to a report from the Wall Street Journal. The news comes as a surprise, but is certainly not implausible.
Right now, there are at least four Android-based gaming devices in the works or on sale. And given the obvious demand, it only makes sense for Google to capitalize on the trend.
What could this mean for the video more »
Sometime between now and the end of July, PC gaming company Valve will hold its annual summer sale. The event, which lasts about a week, has become somewhat of a holiday for gamers in recent years. During the sale, games are marked down by 75% or more, making them far cheaper than even their used console counterparts.
Soon, Valve will push into the console market with its own hardware, the more »
The E3 gaming conference is one of those things that almost every teenager looks forward to. It’s a more popular trending topic than Megan Fox. In the past month alone, according to Google AdWords, Xbox got 45.5 million searches; comparatively Megan Fox got 4 million. Guess we know what’s going through the minds of young adults these days.
I believe that there are three companies in the more »
Microsoft (NASDAQ: MSFT) has admitted defeat. The company is now saying that it will allow used games, and it will not require an internet connection to play video games. So we can all breathe a sigh of relief if we fall into the category of gamers without internet, or video gamers who need to buy video games used.
Xbox One is not dead yet
I remain optimistic on Microsoft going more »
E3 2013 is now over. It was a three-day event teeming with leading gaming companies, console manufacturers, industry analysts, developers and other visitors, who were all there to witness amazing new technologies and never-before-seen products. The buzz around the rivalry between Sony’s (NYSE: SNE) PS4 and Microsoft’s (NASDAQ: MSFT) Xbox One could be seen before the expo. Both these consoles were officially showcased during the show, with implications more »
Used video game sales make up about a quarter of GameStop's (NYSE: GME) business. It's an important part of the industry that the internet is slowly destroying.
The Used Game Market
GameStop is the largest video game retailer in the world. It has over 6,500 stores in 15 countries. It competes with retail giants like Wal-Mart and Target in the video game market and, impressively, holds its more »
After being criticized heavily for the choices it made with regards to its upcoming console, the Xbox One, Microsoft (NASDAQ: MSFT) has done a complete 180 and revised its policy.
Now, Microsoft will no longer require Xbox One consoles to be connected to the Internet every 24 hours. Games will remain on the disc, rather than being installed and activated, and gamers are free to resell their games and lend more »
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